Achieving Financial Success
Financial success often depends on your knowledge, attitude and money values. To master your finances, ask yourself: "What does money mean to me?"
It’s a simple question, but it may be difficult to come up with an immediate answer. Money means different things to all of us; that’s why we each have unique financial goals related to our wants and needs..
For some, money represents security. For others, it means freedom or success. To successfully manage money, you must determine what money means to you. Think about your money values; ask yourself the following questions to explore how your money values shape your spending and saving priorities.
- How did you view money growing up?
- Did your parents ever talk to you about money?
- Have you ever felt richer or poorer than your friends? How did that make you feel?
- How did your parents handle money?
- Do you consider yourself a spender or a saver? Why?
- What’s your charitable-giving philosophy?
- Financially, where do you see yourself in five to 10 years?
- Are you willing to live below your means for a while in order to have something better in the future?
Now that you understand how you view and value your financial resources, here are a few key thoughts to consider.
- When it comes to spending, wait.With fast food, the Internet and smartphones, immediate gratification is the norm. We’re used to getting what we want, when we want it. While technology isn’t bad, having everything instantly at our fingertips increases the tendency to spend without planning ahead. Next time you’re tempted to make an impulsive purchase, don’t. Wait three days; if you still want the item, then consider making the purchase.
- Prioritize your wants. Most people know the difference between wants and needs. However, something others consider a want, you and your family may highly value. For example, charitable giving isn’t a basic survival need, but for many it’s a priority. Living in a nice home may be important to you, but wearing expensive clothing or driving a new vehicle isn’t. Determine what’s most important to you and cut back in other areas to accommodate your priority expenses.
- Don’t focus on others. Many people live lifestyles they can’t afford, while drowning in debt. Focus on your future goals and ignore how other people spend their money. Chances are they rely on credit to buy their lifestyle. Trying to keep up with others is a never-ending battle.
